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A $5 Billion Bargain: Anadarko’s Settlement Reveals Perils Of Mergers

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By Darren Barbee, Hart Energy
April 9, 2014

Anadarko Petroleum Corp.’s (NYSE: APC) agreement April 3 to pay $5.15 billion to settle an environmental suit might have played as a Pyrrhic victory, had the company not been staring at a possible $14.2 billion judgment.

Instead, Anadarko’s stock immediately jumped more than $12 per share April 3 following what the U.S. Department of Justice (DOJ) called the largest recovery for a contamination cleanup in history. At one point the stock went from $86 to $101 that day.

Analysts raised their target prices for the company after cutting expectations by ...

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